Revlon Inc. announced it has sold its Brazilian subsidiary, Ceil Comercio E. Distribuidora Ltda. to Hypermarcas S.A. a Brazilian diversified consumer products corporation mainly in the personal and household goods, pharmacy and food industries. The transaction mainly concerns the Bozzano brand, a leading men’s hair care and shaving line of products. Other brands, also sold in the Brazilian market, and that Revlon considers as “non-core” are included in the sale.
The gross purchase price was approximately USD 104 million in cash, stated Revlon in a release. The US cosmetics maker expects net proceeds, after payment of taxes and transaction costs, to be approximately USD 94 million.
Revlon brand colour cosmetics are not concerned and will continue to be marketed in Brazil through its current third party distributor.
Commenting on this transaction, Revlon President and Chief Executive Officer, David Kennedy, said, "Our business strategy is to build and leverage our strong brands worldwide, particularly the Revlon brand. This transaction presented Revlon with an opportunity to monetize a non-core, non-strategic brand at a very attractive valuation, while enabling us to remain focused on building our core brands around the world."